Fairlington Glen Council Of
Co-Owners
May 3, 2005 (Draft)
Attendees: Mike Hahn, President; Bob Patrician, Treasurer; John Fuller, Secretary ; Charlie Robbins, Buildings & Grounds Liaison. Absent: Paul Greenfield, Vice President.
Also present: Sara Jones, Property Manager; Ricardo Solares, Facility Manager; Howard Goldklang of Goldklang, Cavanaugh & Associates, P.C. (Certified Public Accountants); Katherine Borowec, Alan Bow, Jocelyn Coroerot, Jim Hewitt, Madelyn Johnson, Dave Sherman, Margaret Windus (Ct. 1); Doug Miller, Maren Smith, Hal Vorhies (Ct. 3); Brenda Barthell, Dan Barthell, Sandy Heaton (Ct. 6); Dan Shapiro (Ct. 7); Anne Dahlborg, Willard Smith (Ct. 9); Paula Mathews, Tevis Smith (Ct. 10); Mary Bley, Robert Wilson (Ct. 12); Alison Trimble (Ct. 15); Bill Worsley (Ct. 16); and Pamela Sand, recording secretary.
Call to order: Mr. Hahn, President, called the meeting to order at 7:30 p.m.
Howard Goldklang, auditor for the Glen for the past two years, spoke concerning the audit process and then presented the Glen’s general financial picture at the end of the 2004 fiscal year. Next, H. Goldklang answered several prepared questions from a March 21, 2005 memorandum entitled “Questions for Management and the Auditor concerning Audit Reports for Fairlington Glen,” beginning with the section “18 questions of the auditor concerning the annual audit reports” on page 4. A few of the many points brought out included the following:
· The Glen has a very low delinquency rate—well below 1%, which is very good.
· The auditor does a financial audit, not an operational audit. An operational audit, which evaluates procedures, is very costly.
· They review a large number of expenses, looking for duplicate payments to vendors, reasonableness of purchases, etc.
· They look for financial information in the Board’s minutes, not policy.
· In Virginia, it is important to have a reserve study to determine what should be set aside at least every three to five years. Also, it is good to have a reserve specialist to guide the direction of the community.
· Auditors examine a substantial number of invoices and follow them through to payment. They don’t evaluate internal controls.
· They don’t like petty cash funds.
· If condo fees are not set high enough, the association ends up borrowing from its replacement reserves.
The meeting with the auditor concluded at 8:32 p.m. Mr. Goldklang and a number of others left the meeting during the break.
The meeting reconvened at 8:37 p.m.
03.05.05.1 Motion It was moved and seconded to approve the April 5, 2005 Board meeting minutes. The motion carried (4-0-0).
03.05.05.2 Motion. It was moved and seconded to approve an April 10, 2005 variance requested by co-owners Paula Mathews and Bill Greenwalt of 4301 S. 36th Street to remodel their kitchen, as described The motion carried. (4-0-0)
03.05.05.3 Motion. It was moved and seconded to ratify an April 20, 2005 email vote to approve a December 17, 2004 variance requested by co-owner C. Fay Norred of 3513B S. Stafford Street to replace the backdoor with a full view white door with grid panes. The motion carried. (3-0-1)
03.05.05.4 Motion. It was moved and seconded to approve the April 16, 2005 spring landscape installation proposal by Living Colour Landscaping Company at a cost of $7,781.00. The motion carried. (4-0-0)
03.05.05.5 Motion. It was moved and seconded to approve the work proposal by Davey Tree as presented at a cost of not more than $5,035.00. The motion carried. (4-0-0)
At 9:04 p.m. M. Bley and A. Trimble left the meeting.
03.05.05.6 Motion. It was moved and seconded to approve that Goldklang, Cavanaugh & Associates, P.C. prepare for Fairlington Glen a unit owner tax basis letter for the three years ended December 31, 2004 at a cost of $750.00, and for each year thereafter at a cost of $250 per year. The motion carried. (4-0-0)
The Board asked that further review and approval of the 2004 audit be postponed until the next Board meeting to allow more time for thoughtful consideration by Board members and the Budget Subcommittee.
C. Robbins raised several items of concern to B&G.
It was moved and seconded to approve that the Glen donate $100 to the Fairlington Historical Society. The motion carried (4-0-0).
At 9:30 p.m. all the remaining visitors left the meeting.
01.02.05.7 Motion. It was moved and seconded that the Board convene in Closed Session at 9:32 p.m. to discuss a co-owner situation. The motion carried. (4-0-0)
01.02.05.8 Motion. It was moved and seconded that the Board convene in Open Session at 9:35 p.m. The motion carried. (4-0-0)
01.02.05.9 Motion. It was moved and seconded to send a release to the co-owner at 4317 A2 S. 36th Street in connection with an insurance claim, since he has made adequate repairs to his unit. The motion carried. (4-0-0)
The next Board meeting will be held on Tuesday, June 7, 2005.
03.05.05.10 Motion. It was moved and seconded that the Board adjourn at 9:37 p.m. The motion carried. (4-0-0)